VANCOUVER, British Columbia, June 7, 2022 – The Newswire – Vida Carbon Corp. (“Vida Carbon” or the “Company“) is pleased to announce the signing of an Emission Reduction Purchase Agreement with Core CarbonX Solutions Pvt Ltd (“CCX“), an established climate and sustainability consulting firm based in India. Vida Carbon’s investment will be used to generate carbon offset credits by improving the cultivation and water management practices of rice farmers in the Indian state of Telangana (the “Project“).
- US$8.5 million investment to implement a four-phase Project over 100,000 hectares (ha) of rice fields in Telangana.
- 5.4 million carbon offsets are estimated to be generated by Project activities.
- Each of phases 1&2 of the Project will cover 20,000 ha, and phases 3&4 will each cover 30,000 ha of rice fields.
- Vida Carbon will receive 35% of credits generated in phases 1 and 2 and 25% to 32.5% of credits generated in phases 3 and 4 pursuant to the market price at the time of sale.
- Participating farmers will receive a percentage of revenue from the sale of carbon credits, making them direct participants in the Project’s success.
Global rice production accounts for 8-12% of human generated methane. Flooded fields where rice is cultivated create an ideal environment for the decomposition of organic material, which leads to the generation of methane, a greenhouse gas 27x more potent than CO2. Farmers in Telangana incur no cost in respect of the water or electricity consumption required for cultivation, creating little financial incentive to optimize water consumption. Vida Carbon’s investment will be used to train farmers in water management best practices and equip them with the tools required to accurately measure and regulate the water levels in fields. These practices are expected to reduce flooding, minimize organic decomposition and decrease methane emissions while maintaining crop yield.
The Project accomplishes six United Nations Sustainable Development Goals, including a reduction in water usage of 15% to 25%, providing economic gains to participating farmers, strengthening local entrepreneurial networks, and reducing fuel consumption.
Jamie Keech, Executive Chairman of Vida Carbon, commented “Vida Carbon invests in scalable, impactful projects led by proven operators with the potential for strong financial returns. Investment in rice-field water management technology is an innovative approach to generating high quality carbon offset credits with the potential for a significant positive impact in the lives of local farmers. We are pleased to be partnering with CCX, who have repeatedly proven themselves leaders in the sector.”
Niroj Mohanty, Managing Director of Core CarbonX, added “For over 14 years, CCX has led exceptional climate sustainability initiatives across 12 countries, including India. We are excited to partner with Vida Carbon in helping the farmer community of Suryapet District, Telangana, implement sustainable rice farming practices. As a result of the excellent outcomes and farmers’ feedback under our ongoing pilot phase, more farmers are eagerly looking forward to the Project. We believe this Project to be highly scalable with the potential to deliver meaningful benefits to rice farmers in the Project areas. We appreciate the support of Vida Carbon and look forward to a continued mutually beneficial partnership”.
This is the second streaming transaction Vida Carbon has undertaken with CCX, having previously signed a definitive agreement to deploy fuel efficient cookstoves that will reduce emissions in low-income communities in Odisha, India.
About Vida Carbon Corp.
Vida Carbon is a leading carbon credit royalty & streaming company focused on financing high quality sustainable carbon credit projects globally. Vida Carbon is well capitalized and growing rapidly. Vida’s portfolio of carbon credit generating assets are diversified across jurisdiction and project type and are operated by highly experienced and reputable project developers.
The Company’s mission is to build long-term, mutually beneficial relationships with carbon credit operators and developers in exchange for exposure to the future value created through the production of carbon credits. All projects supported by Vida Carbon bring economic and social benefits to the regions in which they operate.
About Core CarbonX
Core CarbonX is a climate and sustainability consulting organization that has worked with businesses and communities across a number of Asian and African countries for over 14 years. CCX uses its expertise, knowledge, and technology in carbon emission reduction programs to incorporate ideas into sustainable business practices for enterprises, governments, and organizations concerned about climate change.
The diverse portfolio of CCX’s Clean Development Mechanism and Verified Carbon Standard initiatives has helped customers address the uncertainties of climate change while building and maintaining trust, innovating, and paving the road for a more equitable and sustainable future.
ON BEHALF OF THE COMPANY:
Executive Chairman, Vida Carbon
Forward-Looking and Cautionary Statements
Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, “project”, “will” or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning: statements and figures with respect to the estimation of future carbon credit generation from the projects; and the Company’s strategy going forward and the timing thereof. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.